Financial Performance - Revenue for the year ended December 31, 2021, was HKD 1,101,791 thousand, a decrease of 2.46% from HKD 1,129,548 thousand in 2020[40] - Gross profit decreased by 12.44% to HKD 420,530 thousand from HKD 480,300 thousand in the previous year[40] - Annual profit dropped significantly by 78.79% to HKD 25,547 thousand compared to HKD 120,466 thousand in 2020[40] - The company reported a loss attributable to owners of HKD 44,020 thousand, a decline of 496.79% from a profit of HKD 11,094 thousand in the prior year[40] - Basic and diluted loss per share was HKD (2.76), a decrease of 500.00% from earnings of HKD 0.69 per share in 2020[40] - EBITDA for the year was HKD 333,467 thousand, down 24.16% from HKD 439,706 thousand in the previous year[40] - The overall revenue of the group decreased from HKD 1,129.55 million in the fiscal year 2020 to HKD 1,101.79 million in the fiscal year 2021, a decline of HKD 27.76 million[76] - The group's profit for the fiscal year ending December 31, 2021, was approximately HKD 25,550,000, a decrease of 78.79% compared to HKD 120,470,000 for the fiscal year ending December 31, 2020[70] Assets and Liabilities - Non-current assets increased to HKD 2,123,019,000 in 2021, while current assets rose to HKD 1,738,848,000, contributing to a total asset value of HKD 3,861,867,000[43] - The total liabilities of the company were HKD 1,936,001,000 in 2021, which is a 43.5% increase from HKD 1,307,917,000 in 2017[43] - The debt-to-asset ratio improved to 50.13% from 60.90% in 2020[40] - The net asset value of the group as of December 31, 2021, was HKD 1,925.87 million, a 53.58% increase from HKD 1,872.29 million on December 31, 2020[106] - The group's total assets were HKD 3,861.87 million, representing a 64.59% increase compared to HKD 2,165.53 million on December 31, 2020[102] - The total liabilities of the group as of December 31, 2021, were HKD 1,936,000,000, compared to HKD 1,924,990,000 in 2020, resulting in a debt-to-asset ratio of 50.13%[130] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 291,358 thousand from HKD 432,654 thousand in 2020[40] - The group's current ratio as of December 31, 2021, was 1.13, down from 1.35 in the previous year[106] - The total amount of bank and other borrowings was HKD 561.30 million, a decrease of 28.55% from HKD 786.07 million in the previous year[102] - The group plans to consider new financing to maintain an appropriate level of assets and liabilities in anticipation of new investments or the maturity of existing borrowings[102] Revenue Segmentation - The renewable energy business segment became the main source of revenue for the remaining group, contributing HKD 569.20 million in the fiscal year 2021, up from HKD 494.25 million in the fiscal year 2020[77] - The total revenue for the renewable energy business was HKD 569.2 million, with a gross profit of HKD 230.8 million, representing 53.79% and 58.03% of the total group revenue and gross profit respectively[170] - The total revenue for the water supply business in the fiscal year 2021 was HKD 145.42 million, an increase of 27.86% from HKD 117.56 million in the previous fiscal year[153] - In the fiscal year 2021, the wastewater treatment business generated revenue of HKD 83.09 million and gross profit of HKD 27.22 million, representing 7.85% and 6.84% of the total group revenue and gross profit respectively[162] Operational Highlights - The company achieved a total carbon reduction of approximately 17,710,000 tons by the end of 2021, with verified carbon standard projects contributing 2,788,000 tons[48] - The company signed 7 new projects in 2021, which are expected to provide an additional power generation capacity of 25 MW, increasing the signed capacity by 10 MW compared to the previous year[48] - The group operated 37 projects during the year, generating approximately 754,505.73 MWh of grid-connected electricity, a 2.77% increase from 734,141.40 MWh in the previous year[170] - The total daily water supply capacity remains at 290,000 tons, with a total water supply of 71.31 million tons for the year, representing a 12.35% increase from 63.47 million tons in the previous fiscal year[153] Strategic Initiatives - The group plans to optimize its water assets and focus on core business development in the water services sector in 2022[62] - The group aims to enhance its environmental and renewable energy business, particularly in landfill gas projects, and seek opportunities in biomass gas projects from agricultural and food waste[66] - The company plans to establish a carbon reduction investment fund with a capital of RMB 50,000,000 to invest in organic waste resource projects[47] - The company plans to enhance its market presence through strategic partnerships and potential acquisitions in the renewable energy sector[181] Challenges and Risks - The decrease in profit was primarily due to increased impairment provisions for several renewable energy projects and a significant reduction in profit contribution from Yingtan Water Supply Group after the sale of a 20% stake[71] - The expected credit loss for trade and other receivables increased to HKD 69,400,000 in FY2021, compared to HKD 18,530,000 in FY2020, due to slower repayment speeds amid the COVID-19 pandemic[91] - The company expects the fair value of equity investments may decline due to global market volatility and the impact of the COVID-19 pandemic[120] - The group closely monitors foreign exchange risks due to fluctuations in the RMB to HKD exchange rate, as most operations are conducted in China[98]
中国水业集团(01129) - 2021 - 年度财报